Homeowners remodel and redesign their homes for a variety of reasons. It may be out of personal need or desire or they may be preparing their home to sell in the future. Either way, it's important to consider future homeowners in your plans and what your return on your investment for that project may be. Prioritize projects that will help you sell your house faster or for more money over things that appeal to you as a homeowner.
There are many ways for homeowners to approach remodeling projects and even more ways to analyze the projects’ successful outcome. The 2022 Remodeling Impact Report from the National Association of Realtors (NAR) highlights popular home improvements and what sort of return they bring for the investment. Realtors® provided an estimate of the likely dollar value each project would add to the house at resale. In comparing that dollar value to the estimated cost of each project provided by NARI members, a Recovered Project Cost percentage was calculated.
In addition, NAR calculated a Joy Score for each project based on the happiness homeowners reported with their renovations. Let's take a look at the projects that had the highest return on investment as well as those that brought the most joy to homeowners.
For interior projects, the highest percentage cost recovered was from refinishing hardwood floors at 147%, installing new wood flooring at 118%, and insulation upgrades to improve energy efficiency at 100%.
There were numerous interior projects that received a perfect Joy Score of 10: painting the interior of the home, adding a new home office, refinishing your hardwood flooring, installing new wood flooring, renovating closets, upgrading your insulation, and attic conversion to living area. Kitchen upgrades and complete renovations were close behind as well as bathroom renovations.
The top reasons given to complete these projects were need for a change, improve functionality, and upgrade worn out surfaces and finishes.
For exterior projects, the highest percentage cost recovered was from new roofing and new garage door both at 100%. Siding also has a high return on your investment but isn't typically a needed improvement in this area.
Exterior projects with the highest Joy Scores were for painting the exterior, installing new energy efficient windows, and new steel or fiberglass doors. In comparison, to interior projects, no project received a perfect Joy Score of 10. Not surprising, as the exterior of the house isn't where we spend most of our time.
The top reasons given to complete these projects were to upgrade worn out surfaces and finishes and homeowners are planning on selling their home within the next two years.
Remember to lean on your trusted team at Arrive Real Estate Group for the best advice on the updates you should invest in. Even if you aren't thinking about selling now, we are happy to give you our advice as to what will help net you the most money when the time comes to sell. We know what local buyers are looking for and have the latest insights of what your house needs to sell quickly.
If you are thinking of selling your home this year, it may need more preparation than it would have a year or two ago. Today’s housing market has a different feel. There are more homes for sale than there were at this time last year, but inventory is still historically low. Right now, homes that are updated and priced at market value are still selling fast. Contact us today for all of your real estate needs!
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